Trading Bitcoin options is less risky than futures but mind the premium!
Trading Bitcoin options can be a great way to access leverage while avoiding the liquidation risk presented by futures contracts but investors must keep an eye on the premiums. The most basic Bitcoin (BTC) options contracts involve buying a call which gives the holder the opportunity to acquire the asset at a fixed price on a set date. For this privilege, the buyer simply pays an upfront fee, known as a premium, to the contract seller.Although this is a great way to use leverage while avoiding the liquidation risk that comes from trading futures contracts, it comes at a cost. The options....
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Any financial advisor will tell you that futures trading is a risky investment decision. Secure Bitcoin Futures Trading With Crix. When combining futures trading with Bitcoin and digital currency exchanges with sub-par security, the risk to the trader is exponentially greater. However, Bitcoin and digital currency futures exchange Crix.io helps mitigate both problems so customers can trade with greater trust and peace of mind. When trading futures, there is worry over the value of your investment falling before your contract’s maturity date, which also makes it difficult to pay back any....
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